In this article:
(1) "Bank" means a person engaged in the business of banking, including a savings bank, savings and loan association, credit union, or trust company.
(2) "Depositary bank" means the first bank to take an item even though it is also the payor bank, unless the item is presented for immediate payment over the counter;
(3) "Payor bank" means a bank that is the drawee of a draft;
(4) "Intermediary bank" means a bank to which an item is transferred in course of collection except the depositary or payor bank;
(5) "Collecting bank" means a bank handling an item for collection except the payor bank;
(6) "Presenting bank" means a bank presenting an item except a payor bank.
Source: L. 94: Entire article amended with relocations, p. 883, § 2, effective January 1, 1995.
ANNOTATION
Law reviews. For article, "Payee v. Depository Bank: What is the UCC Defense to Handling Checks Bearing Forged Indorsements?", see 45 U. Colo. L. Rev. 281 (1974). For article, "Let the Payor Beware: Dishonoring Documentary Drafts", see 20 Colo. Law. 2263 (1991).
Language of an instrument determines whether a bank is a "collecting bank" or a "payor bank". Accordingly where the language of a sight draft designated a bank as a "collecting bank", its liability for mishandling of the draft was limited to the face value of the draft under § 4-4-103. Shelby Res., LLC v. Wells Fargo Bank, 160 P.3d 387 (Colo. App. 2007).